In Portfolio Analysis,the Goal When Purchasing Bottleneck Items Is To

question 13

Multiple Choice

In portfolio analysis,the goal when purchasing bottleneck items is to:

• A)assure quality at expected levels.
• B)reduce or eliminate customization.
• C)assure lowest total cost of ownership.
• D)minimize acquisition time and cost.
• E)minimize price per unit.

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Definitions:

Standard Cost Accounting System

A cost accounting system that assigns preset costs to products or services, used for budgeting and controlling expenses.

Ideal Standards

Benchmark levels of performance set under perfect operating conditions, used for budgeting and measuring efficiency.

Materials Price Variance

The difference between the actual cost of materials and the standard or expected cost.

Standard Costs

Predetermined costing used in budgeting and decision-making, representing an expected cost under normal conditions.